The price of pepper is high, but it is not certain that traders have gathered the goods as desired because gardeners are still hoarding goods waiting for the price to increase.
This morning on Wednesday, October 12, the price of bucket pepper in Ba Ria-Vung Tau has increased to 158,000 VND/kg, a record high for Vietnam’s bucket pepper price, repeating the record high of the morning of September 23 due to Traders compete to buy and push prices.
This high level, according to some ordering companies, makes agents and traders uncertain to collect the goods as desired. Because, the high price makes gardeners and small speculators, who still hold an estimated quantity of about 10,000 tons, also find it difficult to let go because they still expect the price to be higher when the daily supply is scarce.
Gardeners specializing in white pepper production in Ba Ria-Vung Tau also said that they have not produced white pepper for a long time because of the need for high-quality bucket black pepper. While even low-quality bucket black pepper becomes scarce and pepper price White has surpassed 200,000 VND/kg for a few months now.
End of last night’s session, pepper price Futures in Kochi-India had 4 consecutive sessions of growth, totaling Rs 850 up to Rs 36,690 per quintal for October delivery. Similarly, November delivery rose Rs 985 to Rs 37,540 per quintal, December increased by Rs 985 to Rs 37,540 per quintal. Rs 1,250 to Rs 38,120/quintal. This is also the record high of world pepper prices.
Although the transaction price has set many new records, the actual quantity of goods on the floor is only dripping. Exporters also only focus on the source at the floor’s stockpiles to acquire before the goods run out.
Export price of Indian pepper special grade MG1 exported to the European market is priced at 8,100 USD/ton and the US market is priced at 8,300 USD/ton (C&F), an increase of 200 USD compared to the previous week.
Vietnam’s export black pepper is offered for 500 Gr/l-FAQ at $7,800/ton and 550 Gr/l-FAQ for $8,250/ton, down slightly by $100 compared to last week. White pepper grade 630 Gr/l-FAQ priced at $11,250/ton, grade DW 630 Gr/l priced at $11,550/ton, an increase of $250-300.
While the exported black pepper has higher quality such as 570 Gr/l=FAQ, 550 Gr/l-Asta, 580 Gr/l-Asta… and white pepper grade 650 Gr/l-FAQ or DW 650 Gr /l higher quality is also not available for sale.
On the contrary, the export price of pepper from other countries decreased due to quality problems. Brazil’s pepper has an average decrease of 200-300 USD/ton for each type. Similarly, Indonesian pepper also decreased by an average of 200 USD/ton and Sri Lanka pepper decreased slightly, about 100-150 USD/ton.
Many exporters said that because the world pepper price is at a high level, the goods in the low-cost areas have a rapid increase in consumption while the high-priced goods are difficult to sell, so they are rarely offered. However, they also think that the source of goods has become scarce, only when India and Vietnam are in the harvest, the prices will be improved.
Many traders also said that the last pepper crop in India only obtained a maximum of 45,000 tons, not as many forecasters of about 48,000 tons. The country’s domestic consumption figures are also difficult to predict.
The number of orders from importers has decreased due to tight supply when Vietnam and India are at the end of the season and it is difficult for exporters to find goods when prices are so high as now.
Due to high prices, Vietnamese farmers have increased their pepper growing areas uncontrollably. Only in the Central Highlands during the rainy season this year, several thousand hectares of new varieties were planted.
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